Sheet1year201xJanFeb dollarsAprMayJunJulAugSepOctNovDectotalaveragesTotal Assets$500,000$475,000$460,000$470,000$475,000$485,000$495,000$555,000$600,000$650,000$700,000$750,000$6,615,000Current Assets$250,000$220,000$199,900$204,698$204,392$208,980$213,459$262,829$307,085$351,227$395,251$439,156$3,256,977271,414.75fixed assets$250,000$255,000$260,100$265,302$270,608$276,020$281,541$292,171$292,915$298,773$304,749$310,844$3,358,023279,835.25Year 201X + 1JanjanfebmaraprmayjunjulaugsepoctnovdecTotal Assets$600,000$570,000$552,000$564,000$570,000$582,000$594,000$660,000$720,000$780,000$840,000$900,000$7,932,000Current Assets$350,000$350,000$352,100$359,302$365,608$373,020$380,541$397,171$412,915$428,773$444,749$460,844$4,675,023389,585.25fixed assets$250,000$220,000$199,900$204,698$204,392$208,980$213,459$262,829$307,085$351,227$395,251$439,156$3,256,977271,414.75Estimate the levels of permanent and temporary current assets for Comfin over these months. Find the average amount for fixed assets, permanent current assets, and temporary current assets in the year 201X and year 201X + 1.i)permanent current asset for year 201x total for 201x is equal to=fixed assets-current assets=$101,046ii)temporaryt current asset for year 201x+1 total for 201x is equal to=fixed assets-current assets=$1,418,046ii)Find the average amount for fixed assets,201x=279,835.75 dollars201x1=271,414.75 dollars permanent current assets, and temporary current assets in the year 201X and year 201X + 1.201x=$3,256,977201x+1=389,585.25$4,675,023b)average amounts of short-term and long-term financing should Comfin have during each year if it wants to follow a maturity-matching financing strategy overshort term financing averages=201x+201x+1 divided by 2.i)$5,594,489ii)long term averages $6,615,000c) Sheet2 Sheet3 FN2640: Week 4 Management and Financing Analysis 4.2/Short-Term Financing 1 Use the information below for this assignment. Comfin Company has estimates on its level of current and total assets for the next two years: Year 201X Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total Assets $500, 000 $475, 000 $460, 000 $470, 000 $475, 000 $485, 000 $495, 000 $555, 000 $600, 000 $650, 000 $700, 000 $750, 000 Current Assets $250, 000 $220, 000 $199, 900 $204, 698 $204, 392 $208, 980 $213, 459 $262, 829 $307, 085 $351, 227 $395, 251 $439, 156 Year 201X + 1 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total Assets $600, 000 $570, 000 $552, 000 $564, 000 $570, 000 $582, 000 $594, 000 $660, 000 $720, 000 $780, 000 $840, 000 $900, 000 Current Assets $350, 000 $350, 000 $352, 100 $359, 302 $365, 608 $373, 020 $380, 541 $397, 171 $412, 915 $428, 773 $444, 749 $460, 844 a. Estimate the levels of permanent and temporary current assets for Comfin over these months. Fi.

1. Sheet1year201xJanFeb
dollarsAprMayJunJulAugSepOctNovDectotalaveragesTotal
Assets$500,000$475,000$460,000$470,000$475,000$485,000$4
95,000$555,000$600,000$650,000$700,000$750,000$6,615,000
Current
Assets$250,000$220,000$199,900$204,698$204,392$208,980$2
13,459$262,829$307,085$351,227$395,251$439,156$3,256,977
271,414.75fixed
assets$250,000$255,000$260,100$265,302$270,608$276,020$2
81,541$292,171$292,915$298,773$304,749$310,844$3,358,023
279,835.25Year 201X +
1JanjanfebmaraprmayjunjulaugsepoctnovdecTotal
Assets$600,000$570,000$552,000$564,000$570,000$582,000$5
94,000$660,000$720,000$780,000$840,000$900,000$7,932,000
Current
Assets$350,000$350,000$352,100$359,302$365,608$373,020$3
80,541$397,171$412,915$428,773$444,749$460,844$4,675,023
389,585.25fixed
assets$250,000$220,000$199,900$204,698$204,392$208,980$2
13,459$262,829$307,085$351,227$395,251$439,156$3,256,977
271,414.75Estimate the levels of permanent and temporary
current assets for Comfin over these months. Find the average
amount for fixed assets, permanent current assets, and
temporary current assets in the year 201X and year 201X +
1.i)permanent current asset for year 201x total for
201x is equal to=fixed assets-current
assets=$101,046ii)temporaryt current asset for year 201x+1
total for 201x is equal to=fixed assets-current
assets=$1,418,046ii)Find the average amount for fixed
assets,201x=279,835.75 dollars201x1=271,414.75 dollars
permanent current assets, and temporary current assets in the
year 201X and year 201X +
1.201x=$3,256,977201x+1=389,585.25$4,675,023b)average
amounts of short-term and long-term financing should Comfin

2. have during each year if it wants to follow a maturity-matching
financing strategy overshort term financing
averages=201x+201x+1 divided by 2.i)$5,594,489ii)long term
averages $6,615,000c)
Sheet2
Sheet3
FN2640: Week 4 Management and Financing
Analysis 4.2/Short-Term Financing
1
Use the information below for this assignment. Comfin
Company has estimates on its level of current
and total assets for the next two years:
Year
201X Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Total
Assets
$500,
000
$475,
000
$460,
000

3. $470,
000
$475,
000
$485,
000
$495,
000
$555,
000
$600,
000
$650,
000
$700,
000
$750,
000
Current
Assets
$250,
000
$220,
000

4. $199,
900
$204,
698
$204,
392
$208,
980
$213,
459
$262,
829
$307,
085
$351,
227
$395,
251
$439,
156
Year
201X +
1 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

5. Total
Assets
$600,
000
$570,
000
$552,
000
$564,
000
$570,
000
$582,
000
$594,
000
$660,
000
$720,
000
$780,
000
$840,
000

6. $900,
000
Current
Assets
$350,
000
$350,
000
$352,
100
$359,
302
$365,
608
$373,
020
$380,
541
$397,
171
$412,
915
$428,
773

7. $444,
749
$460,
844
a. Estimate the levels of permanent and temporary current assets
for Comfin over these months.
Find the average amount for fixed assets, permanent current
assets, and temporary current
assets in the year 201X and year 201X + 1.
b. What average amounts of short-term and long-term financing
should Comfin have during each
year if it wants to follow a maturity-matching financing strategy
over time?
c. What average amounts of short-term and long-term financing
should Comfin have during each
year if it wants to follow an aggressive financing strategy over
time?
d. Suppose Comfin’s cost of short-term funds is 8 percent and
its cost of long-term funds is 15
percent. Use your answers in (b) and (c) to compute the cost of
each strategy.
e. What are the pro and con arguments toward each strategy in
terms of profitability, risk, and

8. company liquidity?
Source textbook: Melicher, R. W., & Norton, E. A. (2011).
Introduction to finance: Markets,
investments, and financial management (14th ed.). Hoboken,
NJ: John Wiley.
Submission Requirements:
Answer each problem in detail with a conclusion and results.
Submit your answer in a Microsoft Excel file, showing step-by-
step solutions to all calculations.
Evaluation Criteria:
You will be evaluated on the following points using the rubric
for your performance in this
assessment:
Did you accurately calculate the permanent and temporary
current assets?
Did you correctly recommend average amounts of short-term
and long-term financing
required?
FN2640: Week 4 Management and Financing
Analysis 4.2/Short-Term Financing

9. 2
Did you compute the cost of each strategy?
Did you explain the pros and cons of each strategy in terms of
profitability, risk, and company
liquidity?
Click here to download the rubric that will be used to evaluate
this analysis.
http://www.content.distance-education.itt-
tech.edu/cliksdmrroot/content_directory/mount1/507393/Rubric
s/Writing_Assignment_Rubric.xlsx